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Regulations

FRANCE & MONACO

May 2017

If I have not chartered before, can I qualify for the FCE?
If you did not charter in French or Monegasque waters last year but plan to do so this summer, you can qualify for the French Commercial Exemption “by anticipation”.
This means that you will automatically be granted a VAT exemption on the purchase of supplies and services in France and Monaco on the assumption that you wi [...]

May 2017

In France (like most EU countries) fuel is subject to two taxes: VAT, which accounts for 20% of the final cost, and excise duty which accounts for approx. 50% of the cost per liter.
Current regulations provide that energy products supplied “for use as fuel for the purpose of sea navigation other than private pleasure vessels” are excise-duty exempt.
Charter yachts are almost [...]

May 2017

To date, compliance with the terms of the French Commercial Exemption (FCE) enables EU and non-EU registered commercial yachts to purchase VAT exempt supplies and services in France.
The FCE also enables non-EU commercial yachts to be imported and released into free circulation in the EU under a specific customs relief scheme.
Up until 2015, to be compliant, yachts were required to be commer [...]

June 2016

How to qualify for duty-free services and supplies in France and Monaco
Are you a new to the charter market? Have you just finished a year-long refit? Are you back on the charter market after a break of 12 months or more? Have you returned to the Med after some time in the Caribbean or other cruising grounds?
If you are one of the above, commercially registered, and did not charte [...]

June 2016

Do I need a French VAT number if I charter in France and Monaco?
Yes, you need to have a VAT number in each EU Member State where you intend to start charter activities. A French VAT number is good for Monaco.
How do I get a VAT number?
You must appoint a local fiscal representative/agent unless the yacht owning company has registered offices in France or Monaco. The fiscal representati [...]

June 2016

Is VAT applied to charters in France and Monaco?
Yes, VAT is applied to all charters that start in French and Monegasque waters.
Why is VAT due in Monaco since it’s not part of the EU?
Although Monaco is not part of the EU territory, it is part of the EU Customs, VAT and excise areas.
What is the VAT rate on charters?
20%.
Can I pay VAT on reduced fees in [...]

June 2016

Are there any other compliances for commercial yachts chartering in France?
Non-EU yachts must be imported and in free circulation in the EU before they can start charter operations. Under the French Commercial Exemption (FCE) non-EU yachts can be imported without VAT being paid on the hull.
What is the FCE?
The French Commercial Exemption is a system which enables:
1. Non-EU com [...]

June 2016

Can I purchase duty-free goods and services (APA) in France and Monaco?
Yes, VAT is only due on the charter fees. APA and delivery/redelivery fees are not subject to VAT if you comply with the terms of the FCE.
What about fuel?
Duty-free fuel is available until 1st October 2016. After that date you will also have to comply with the provisions of the Order (Arrete) issued by the French [...]